Tortoise Acquisition Group (NYSE: SHLL) has made a name for itself on Wallstreet this year as they plan to merge with EV truck innovator Hyliion. SHLL has surged 343% over the past quarter, as the merger date moves closer to finalisation. Over the past few days of trading, SHLL stock dipped sharply as the EV sector went into correction. Since the selloff, SHLL rebounded strongly as investor sentiment remains bullish on the up coming merger. SHLL recently announced that there will be a special meeting set for the 28th of September at 9:30 am ET. This special meeting will allow shareholders to vote on the out come of the up-coming merger with Hyliion. As we move closer to the merger date, lets breakdown the key details of the merger and the future for SHLL-Hyliion investors.
Key merger details
- Tortoise Acquisition Corp (NYSE:SHLL) and Hyliion will merge as a new company, trading under the ticker symbol (NYSE: HYLN).
- SHLL is a Special Purpose Acquisition Company (SPAC) that’s sole objective is to merge or acquire another company after raising capital at its IPO. SHLL will no longer be trading under its current ticker once the merger is completed.
- Hyliion will receive $560 million from this merger. CEO Thomas Healy advised will enable them to push the production of the Hypertruck ERX to full capacity.
- “Smart money” has poured money into SHLL ahead of the merger with Hyliion, with the likes of Morgan Stanley, Credit Suisse, UBS, Goldman Sachs and Bank of America currently holding SHLL.
- Hyliion revenue is expected to explode in the next 3-5 years, with a 2023 revenue forecasts at $1.019 Billion and 2024 forecasts to reach upwards of $2 Billion.
What SHLL investors need to know as the merger date closes in
The shareholder vote on Monday 28th of September will formalise the proposal for SHLL to merge with Hyliion under a new ticker (NYSE: HYLN). SHLL has reminded its shareholders to vote on this proposal, no matter how many shares they hold. For more information in regards to voting click here.
SPAC companies follow a unique procedure when merging or acquiring a company. Once SHLL obtains approval from its shareholders, assuming all other criterias are met – the merger will be consummated. From here the two companies will combine into one publicly traded corporation, finalising the merger. For more information on SPAC mergers, we recommend reading this Harvard Law article here.
The future for SHLL & Hyliion investors
This week saw a decline in the EV sector, with SHLL stock falling 28% over a 3 day period. SHLL quickly rebounded back to a new equilibrium at $44.39 by market close on Friday. From today, SHLL stock will likely rise on Monday after the shareholder vote, according to pre-market volumes (opinion not advice).
Interestingly, compared to NIO and NKLA which are both fully electric manufacturers, Hyliion develop hybrid components for Class 8 trucks. The innovative powertrain promises a 0-60 mph in 20 seconds, while hauling up to 80,000 lbs load. The impressive technology offers a more efficient yet cleaner performance for Class 8 trucking companies.
Investors are heavily relying on Hyliion led by CEO Thomas Healy, to roll out the power trains effectively moving into 2021. With such strong revenue forecasts, Hyliion executive managers and board members will have a large job ahead, to please the even larger expectations from Shareholders.
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The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.